Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you own a portfolio that has a total value of $175

You own a portfolio that has a total value of $175,000 and it is invested in...

70.2K

Verified Solution

Question

Finance

You own a portfolio that has a total value of $175,000 and it isinvested in Stock D with a beta of .89 and Stock E with a beta of1.31. The beta of your portfolio is equal to the market beta. Whatis the dollar amount of your investment in Stock D?

Choices:

$40,104.17

$22,917.11

$34,375.22

$129,166.67

$45,833.33

Answer & Explanation Solved by verified expert
3.7 Ratings (414 Votes)
Solution As per the information given in the question we have Beta of stock D 089 Beta of Stock E 131 Given that the Beta of the portfolio is equal to the market Beta 1 Total value of investment in Portfolio 175000 To find dollar value of investment in Stock    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

You own a portfolio that has a total value of $175,000 and it isinvested in Stock D with a beta of .89 and Stock E with a beta of1.31. The beta of your portfolio is equal to the market beta. Whatis the dollar amount of your investment in Stock D?Choices:$40,104.17$22,917.11$34,375.22$129,166.67$45,833.33

Other questions asked by students

Q

Which graph is true for 4p orbital of H like atom RPF Radial probability function...

Physics
Q

A. Describe the histological process by which the kidney concentrates urine, name the cells and tissues...

Medical Sciences
Q

For PIC16F1619, how does the TIMER0 prescalar work? If we set PS2 = 0, PS1 =...

Electrical Engineering
Q

The following table shows how the private marginal benefit enjoyed by John, Mary, Loren, and all...

Economics
Q

Given the information of beak depth here does it show variation in beak depth in...

Biology
Q

4 inversely proportional to h Two drops of equal radius are falling the 060 6...

Physics
Q

becomes 4 times hen a tiny circular obstacle is placed in the path of light...

Physics
Q

In 7 If possible write a congruency statement and state the theorem SSS SAS ASA...

Geometry
Q

Solve the following logarithmic equation. Express your answer as either an exact expression or a...

Basic Math
Q

A survey of 138 persons was conducted at TCC and it was found that 10...

Statistics
Q

The data for the month-end adjustments of Silber Insurance Agency at January 31,2023,...

Accounting
Q

[The following information applies to the questions displayed below.] Silver Company manufactures kites and...

Accounting